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IRS Notice 1444 – Economic Impact Payments

December 28, 2020

As part of the CARES Act many taxpayers received a one-time Economic Impact Payment of up to $1,200. This payment was intended to stimulate the economy by getting money to those who were negatively affected by the Coronavirus. It was designed as an advanced 2020 tax credit so that taxpayers would receive the money in early 2020, when it was most needed, rather than at tax time in 2021.

IRS Notice 1444 was included with each payment detailing to whom the payment was made, how it was made, and more importantly, the amount paid. It is important that taxpayers keep records of this Notice 1444 as they will need to include this information when filing their 2020 tax returns.  In some instances, taxpayers who did not receive an advanced payment for the full amount authorized by law, may be eligible to receive an additional credit when filing their 2020 tax return.

If you did not retain the IRS Notice 1444 then it will be important to confirm the amount of the payment via bank records before filing your 2020 income taxes. You will need to report the amount received, which will not be taxable, but will ensure that you do not accidently claim an additional payment on your income tax return which could cause a delay in the processing of your tax return.